
\begin{table}[htbp]
\begin{center}
\begin{scriptsize}
\begin{tabular}{l D{.}{.}{4.5} D{.}{.}{4.5}}
\toprule
 & \multicolumn{1}{c}{(1)} & \multicolumn{1}{c}{(2)} \\
\midrule
Losses Cycle$_{t-1}$                            & 0.61^{***}              & 0.59^{***}              \\
                                                & (0.02)                  & (0.02)                  \\
GDP Output Gap$_{t-1}$                          & -0.06^{**}              & -0.05^{*}               \\
                                                & (0.03)                  & (0.03)                  \\
polity2$_{t-1}$                                 & 0.04^{**}               & 0.04                    \\
                                                & (0.02)                  & (0.04)                  \\
polity2$_{t-1}$ $\times$ GDP Output Gap$_{t-1}$ & -0.01^{**}              & -0.01^{**}              \\
                                                & (0.00)                  & (0.00)                  \\
State Capacity$_{t-1}$                          &                         & -0.11                   \\
                                                &                         & (0.09)                  \\
Imports$_{t-1}$                                 &                         & 0.00                    \\
                                                &                         & (0.00)                  \\
Exports$_{t-1}$                                 &                         & -0.00^{**}              \\
                                                &                         & (0.00)                  \\
Population (log)$_{t-1}$                        &                         & 0.16                    \\
                                                &                         & (0.11)                  \\
Real GDP per capita (log)$_{t-1}$               &                         & 0.09                    \\
                                                &                         & (0.11)                  \\
Electricity Consumption$_{t-1}$                 &                         & 0.00                    \\
                                                &                         & (0.00)                  \\
Population Density$_{t-1}$                      &                         & -0.00                   \\
                                                &                         & (0.00)                  \\
\midrule
Democracy Insturment F-stat.:                   & 14.31                   & 14.31                   \\
Ouput Gap Insturment F-stat.:                   & 23.91                   & 23.91                   \\
Ouput Gap X Democracy Insturment F-stat.:       & 21.35                   & 21.35                   \\
Year dummies                                    & \multicolumn{1}{c}{Yes} & \multicolumn{1}{c}{Yes} \\
Country fixed-effects                           & \multicolumn{1}{c}{Yes} & \multicolumn{1}{c}{Yes} \\
Number of countries                             & 107                     & 105                     \\
Num. obs.                                       & 3148                    & 2909                    \\
Adj. R$^2$                                      & 0.24                    & 0.20                    \\
\bottomrule
\multicolumn{3}{l}{\tiny{$^{***}p<0.01$; $^{**}p<0.05$; $^{*}p<0.1$}}
\end{tabular}
\end{scriptsize}
\caption{2SLS Results: Employing the Polity 2 score}
\label{tab:polity2}
\end{center}
\end{table}
